Romania’s Journey of Integration into the European Monetary Union: a Quantitative Analysis

Nobody can doubt that in most countries from Western Europe, it is almost unanimously observed the advantage of using the EUR currency as single currency. Thus, we may suppose that adopting the single currency could be beneficial for Romania as well. For Romania to become a member of the European Monetary Union, our country would have to build itself a reference system in the center of which it should place the single European currency. This currency should be a stability factor, which will lead to the achievement of important savings from many national economic agents, especially due to the elimination of the exchange rate risk or lower transaction costs. Considering that our country would become a member of the Eurozone and adopt the EUR currency, it was noted that local banks have manifested their interest in building a system in which EUR would play an important role. Thus, they accepted deposits in EUR, they granted loans in EUR, thus contributing to the large-scale use of the single currency on Romanian territory. Therefore, the adaptation of the Romanian banking system for this move has already started.